‘The Price Isn’t Right,’ Says Top Investor About Rocket Lab Stock
Tip Ranks·
- Rocket Lab raised 1.94 billion USD by issuing 29.3 million new shares at an average price of 66 USD to fully fund the cash portion of its upcoming acquisition of Iridium Communications.
- This equity financing avoids heavy short-term debt burdens for the loss-making space company, though it results in about a 5% share dilution, with total dilution potentially reaching 12% upon completion.
- Despite the smart financing move, investor Daniel Sparks cautions against buying the stock at the current price of 72 USD, while Wall Street analysts maintain a strong buy consensus with an average target of 109.47 USD.